Bitcoin treasury companies can post higher returns than bitcoin itself in a bull market, but in a bear market the same structure can magnify losses, a report said.

Cointelegraph, a blockchain media outlet, reported on Sept. 17 local time that as of September 2026 the number of listed companies that have added bitcoin to their financial statements had risen to 179.

The structure of these companies is broadly similar. They raise money in traditional capital markets to buy bitcoin, and seek to boost shareholder returns by increasing the bitcoin backing per share faster than the pace of share dilution.

The problem is that the structure is advantageous when bitcoin prices are rising, but the burden can grow in a downturn. If the stock premium disappears, it becomes harder to attract investor funds, while debt maturities and yield commitments remain. Since July 2025, the market capitalisation of the top 50 bitcoin treasury companies has fallen by about $83 billion.

A recent case of shareholder backlash at Metaplanet also showed problems that excessive dilution can bring. The weaker the market, the more likely treasury companies are to face greater funding needs. At that point, the dilution burden on existing shareholders can also increase.

StoneX analyst Mark Palmer said investors should look beyond total bitcoin holdings and focus on fully diluted bitcoin per share that reflects debt and preferred stock claims. If a company issues shares at a price above the value backed by bitcoin and uses the proceeds to buy more bitcoin, bitcoin per share can rise. If it raises funds at a lower valuation, bitcoin per share can fall.

Gaps between companies were also clear. McCarthy, an analyst at crypto analytics firm LO:TECH, said Strategy was able in the last bull market to take on new debt and issue more debt again, helped by a surge in bitcoin. He said some companies that tried to emulate it merely expected their share prices to catch up after buying bitcoin, and had no exit strategy for when the trend turned.

Counterarguments citing actual performance also emerged. Strive CEO Matt Cole claimed the company has not sold a single bitcoin and outperformed bitcoin returns by increasing its holdings by about four times during a bitcoin bear market. Nakamoto chairman David Bailey said Metaplanet was the best-performing stock in the world for nearly two years and had risen 1,300 percent from its starting point.

Debt maturities and yield obligations can, however, become a burden again over time. Nakamoto shares have fallen 99 percent from their 2025 peak, and Britain's Satsuma Technology also suffered a similar drop. McCarthy said if he invested $100,000 in bitcoin, he would put most of it into a spot exchange-traded fund, and allocate only a portion to Strategy to target volatility.

In the end, investing in bitcoin and investing in bitcoin treasury stocks may seem similar but have different characteristics. Buying bitcoin is a bet on the bitcoin price itself. Investing in treasury stocks also requires assessing management, the funding structure, financial condition and corporate governance, the article said.

Metaplanet was the best performing equity in the world for nearly two years, and even after the rout in bitcoin is up 1,300% from genesis. They built the second biggest corporate holding, more than 40x Bitcoin per share, and completed two major acquisitions. Every founding team…